1. Japan’s quest for reduction of LTC hospital beds Controversy over Japan’s reform 2008
Etsuji Okamoto, MD, MPH
National Institute of Public Health
(R&D arm of Ministry of Health, Labor & Welfare, MHLW)

2. Background of the Reform
2005: The cabinet economists advocated a “global budget” capping the total health care cost
Ministry of Health, Labor & Welfare (MHLW) and Japan Medical Association (JMA) opposed that “health care shall not be capped”
MHLW promised the cabinet that “health care cost can be controlled by keeping people healthier through prevention”
September 2005, the general election---the overwhelming victory of the ruling party

3. Three pillars of Japan’s reform 2008
25% Reduction of prevalence of “metabolic syndrome (HT, DM, Hyperlipidemia)” between 2008 & 2015 (age-adjusted)
200,000 Reduction of LTC (geriatric) hospital beds, from 350,000 to 150,000, by converting them into less costly nursing homes
Reduction of disability among elderly by promoting prevention

4. Institutional care of LTC
Elderly population: 25.6 million (20.1% of pop)
LTC hospital beds: 380,000 (14.8 per 1000 elderly)
Skilled nursing facilities: 311,000 (12.1)
Nursing homes: 404,000 (15.8)
A total of 1.1 million beds
Cf) acute care beds: 0.9 million, psychi beds 350,000

5. Do they really need to be hospitalized?

6. LTC hospital beds per 1000 elderly (2005)

7. Psychiatric beds per 1000 population (2005)

8. Precarious situations of LTC hospitals
In the implementation of the LTC insurance in 2000, LTC hospitals beds were classified as “hybrid” of the LTCI and health insurance
Of 380,000 beds, 250,000 are health insurance beds and 130,000 are LTCI beds.
Difference is that one must qualify as disabled by “need assessment” by care managers for LTCI beds, while health insurance beds need only doctors’ order

9. Patient status of the LTC beds
Questionnaire survey as of October 2006
Medical need of patients of the health insurance beds: most 17.5%, medium 45.8%, least 36.8%
No difference between patients of health insurance beds and LTCI beds (half of them do not need constant care by doctors).

10. Price difference (monthly, excluding meals)
LTC beds of health insurance: \490,000
LTC beds of LTCI: \410,000
Skilled nursing facilities: \310,000
Nursing homes: \290,000

11. Proposed solutions
Converting ALL (130,000) beds of LTCI into SNFs or nursing homes by 2012
Converting half of LTC beds of health insurance (250,000) into SNFs or nursing homes (Medical need of patients of the health insurance beds: most 17.5%, medium 45.8%, least 36.8%---beds for “most” + 70% of “medium” will be retained)
Encouraging community care to accommodate more elderly to live at their homes.